It's always nice to see someone who knows what they're talking about rise to speak, and who better than an Honorary Fellow of the Chartered Institute of Highways and Transportation to contribute to a debate on transport... Here is Ros's contribution...
Baroness Scott of Needham Market: I take this opportunity to congratulate the noble Earl on his appointment. In the short time with his brief he has already shown himself to be an assiduous Minister and I look forward to working with him on transport issues in the coming months and years.
In his opening remarks he talked about the fundamental role that transport plays in the economic, social and environmental well-being of the community. My interest in transport developed in a much less dramatic way as a councillor in Suffolk when I realised fairly quickly that probably nine out of 10 pieces of casework related to transport in some way or another, whether it was home-to-school transport, a dangerous crossing, an inability to access some sort of public service, or the state of the roads. I have always been interested in the enabling role that transport plays, and the fact that many good policy interventions made by government and local authorities failed to work because nobody properly thought through the transport dimension.
I have never made a pretence of having any great technical expertise on transport but I have a great admiration for those who do. The UK transport industry is a major employer throughout the country. In the past 20 years huge structural changes in the industry mean that transport is much less the preserve of the public service than it used to be and there is huge variation in the size of the organisations concerned, from large multinationals to small specialist companies—indeed, Parry People Movers.
The Brunel report published in November 2008 reported a supply of 87,400 people working in engineering, the technical field and planning across the transport industry. That compared to a demand of 96,900. While I acknowledge that the cancellation or postponement of some projects may have reduced the skills gap, it still exists. The challenge on how to mix economic growth with a low-carbon economy is set to increase the skills shortage in coming years. If we do not meet that challenge our future prosperity will be jeopardised.
Currently, the average age of a chartered engineer is 57. That may be young compared to the membership of this House, but the reality is that over the next decade a huge part of the current knowledge and experience in the transport engineering industry will be retiring. While there are many young people graduating into engineering, many of them then do not go on to work in engineering—they go off and do other things, which are usually better paid.
Young people are required to make a choice about their subject options about 12 years before they would expect to become a chartered engineer or transport planner, so a choice made about topics and subjects this year will affect a young person qualifying in 2022, or thereabouts. Operating on these timescales does not sit comfortably with short-term planning and stop/go investment. Advanced apprenticeships, support for 14 to 19 diplomas and supporting STEM subjects all need funding, and what is more they need employers who have the security of knowing that they will have predictable income streams to pay for the training. Statutory regulations on apprenticeships should be looked at to ensure that they are cost-effective, accessible and manageable, especially for small businesses.
Furthermore, it does not stop with young people. At all levels, changing skill requirements, new and safer working practices, green technologies and other developments mean that the need for training and development is continuous. The costs of that always fall to the industry, which is another reason why industry needs stable investment flows.
The need for skilled, specialised personnel in the transport sector is crucial and will remain so. The supply cannot be turned on and off at will. It takes a considerable time to develop such people, and the timescale goes way beyond our current financial challenges.
At this time, we have to consider a simple economic case: stop/go work flows will make it difficult for even the most enlightened employers to go on investing in good training and development. A lack of short-term prospects could drive skilled people to other sectors or abroad. The result of those two things could exacerbate the skills shortage, driving up costs, when the upturn comes. If the skills base is too far eroded, there will be a real lack of capacity to provide the transport infrastructure needed to sustain growth. The transport industry needs a long-term vision and strategy so that it can resource the skills needed for a low-carbon economy in the future.
I want to say a few words about transport spending in the current environment. In roads, focusing on maintaining the existing asset and using it more effectively should be a priority. It is usually easier to commission and has more immediately visible results. Reactive maintenance—in other words, response to damage—is an inefficient way of dealing with the highway. Planned preventive maintenance offers better value for money and is more efficient.
Road safety is not just a matter of quality of life —often literally—although that is clearly uppermost in our minds. It is also a question of value for money —savings for the NHS in dealing with the injuries caused by road traffic accidents, but also the long-term care required by people with the most severe injuries. Yet there are very few training requirements for people in road safety specialisms, and what little there is is provided by local authorities on a discretionary basis. Of course, when money is tight, discretionary services, especially training, tend to be high on the cuts list.
It is possible to build incentives for training into our procurement processes. For example, the East Midlands Highways Alliance is a collaboration of a number of companies and local authorities whose aim is to improve highways services in the region, and includes the development of a skills academy. The savings to its partners have been huge over recent years.
I have always used trains and, since becoming president of my party, have spent an inordinate amount of time on the railways. I have seen them at their best, and I have seen them at their worst. My overwhelming feeling is that the current franchising scheme, and the highly complex regulatory regime within which the rail industry has to operate, has completely lost sight of the needs of the passengers. I hope that the very welcome review of the franchising system will at last begin to put the passenger first. The fares system is in chaos and there is a widespread lack of understanding of how it works, even among the staff who operate the system. Queues for tickets are at unacceptable levels and should be dealt with as a priority. There are far too many bus substitutions and too few visible staff to help when things go wrong. When passengers complain to train operators, they are often told that their freedom to respond to passengers is hampered by franchises which are overregulated and micromanaged by the Department for Transport. Surely departmental oversight should be focused on the things that really matter: punctuality, reliability, cost and, above all, passenger satisfaction.
It is surely no coincidence that the three train operating companies with the highest performance and passenger satisfaction are those with the longest franchises. Can the Minister tell us the Government's thinking on longer franchises? Does he agree that the decision to award a franchise should not be on cost alone; it should be on improving service quality and how much the operator is prepared to put in? With refranchising of the west coast main line due in 2012 and of the east coast main line next year, and with the whole question of my local, rather benighted, rail franchise, National Express East Anglia, can he tell us whether they will come under the new regime which is currently under consultation, and what will be the timetable? Furthermore, will he say something about rolling stock? There is clearly a need for new rolling stock, but at the moment there seems to be a huge amount of unnecessary government intervention between train operators and the roscos.
I am very pleased that this House has had the opportunity to debate transport matters at this early stage in the life of the new Government. I look forward to contributions from other noble Lords. The importance of transport in all areas of our lives is not always recognised, and it is good that it has been today.
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